The development of new business models is both the greatest opportunity and the most complex challenge facing treasury and payments teams right now. Strategic treasury leaders are helping to deliver greater agility into new markets and pivoting to digital-first business models: embedded payments, contextual commerce, recurring revenue, direct-to-consumer (D2C), platform models and super-apps. But a successful strategy needs bold thinking and the right partners to navigate this constantly changing landscape.
Title: Digital business models are becoming must-haves for business to drive immediate and long-term growth
Speaker: Natasha Condon, Global Head of Core Trade, J.P. Morgan Wholesale Payments
I think most people are already familiar with things like the huge change in direct-to-consumer, where corporations who were previously further down in the consumer supply chain are looking for opportunities to reach those consumers directly.
Like almost everything in the 21st century, it’s driven by the internet.
We’ve all also heard about the recurring revenue patterns around subscription services. You can buy your television channel as a subscription.
You can also buy your car as a subscription. That represents a massive new requirement in terms of how treasury structure themselves internally. That’s a huge pivot for a corporation.
Title: How are traditional companies meeting the digital demand?
Speaker: Renata Vilanova Lobo, Head of Wholesale Payments Brazil, J.P. Morgan
Mergers and acquisitions have been a very relevant trend over the past few years in LATAM. Mainly driven by traditional companies trying to speed up the process of adapting their business model towards the new digital reality.
We also see that companies that were able to rapidly adapt their business model towards the new digital demand are the ones that are presenting higher growth rates today.
Title: How will the digital business model landscape continue to evolve?
Speaker: Lucia Li, Payments and Treasury Services Market Management, J.P. Morgan, Wholesale Payments
With the proliferation in ecommerce and digital, we see two models emerging, especially in those growing ecommerce economies – contextual commerce and sharing economy. For contextual commerce, it’s about embedding the transactions in the everyday interactions a consumer has.
Moving forward, where we see that growing is to other industries, to media for instance – buying something when you’re seeing it on a show.
When you think about the sharing economy model, it’s very similar to recurring revenue – how will you keep track of these recurring payments that might not be at a fixed interval, like it is for recurring revenue, but it is still going to be a recurring payment from the same individual and use that to complete your 360 view of that consumer.
More than 60 percent of our clients globally cited business model pivots as the driver for their priorities1. Our Wholesale Payments experts discuss the different models emerging and why corporate treasury and payment teams need to join the journey and have a seat at the table.
Consumer brands are adopting operating models like direct-to-consumer, direct-to-store and online marketplaces. Now, corporate treasury teams are tasked with preparing backend systems to help ensure success. But they can’t go at it alone; it will require a broader collaboration across the business.
Businesses are increasingly building B2C, B2B and P2P online marketplaces to reach new customers. Here’s how corporate treasury teams can play a major role in a successful marketplace strategy.
Receive key updates and news with relevant actionable insights and best practices — including the latest intelligence on treasury trends, digital payments innovation, regulatory change, ESG and sustainable ﬁnancing and much more.
J.P. Morgan is the marketing name for the Wholesale Payments business of JPMorgan Chase Bank, N.A. and its affiliates worldwide.
The products and services described in this document are offered by JPMorgan Chase Bank, N.A. or its affiliates subject to applicable laws and regulations and service terms. Not all products and services are available in all locations. Eligibility for particular products and services will be determined by JPMorgan Chase Bank, N.A. or its affiliates.